Deflation revisited China’s economy in March, following its disappearance in February. China’s consumer inflation decelerated to an annual rate of just 0.1% in March from the surprising 0.7% reading in February.
This was slower than the 0.4% rise forecasted by economists. However, month-on-month prices plummeted by a significant 1%, reversing the same-sized rise in February and exceeding the forecasted 0.6% decline.
This contrasted sharply with the inflationary trend in the US, where the consumer price index surged by 0.4% month-on-month, resulting in a headline rate of 3.5%. The National Bureau of Statistics reported a 2.8% drop in producer prices, slightly exceeding the 2.7% decrease in February.
This marked the 18th consecutive month of contraction in producer prices, showcasing the enduring impact of deflationary pressures on the economy. The producer price index concluded the first quarter with a 2.7% decline, signaling no signs of improvement.